Atal Pension Yojana (APY) was announced by the Government of India in the budget of 2015-16 with an aim to help the people working in the unorganized sector.
On investing in it, you get a pension of Rs 5,000 per month.
It also provides tax benefits.
The Government of India also contributes to this scheme.
This is a risk-free plan.
This scheme was started to help poor people working in the unorganized sector to get regular income after retirement. This scheme encourages them to save for their retirement. The entire operational work of this scheme is handled by the Pension Fund Regulatory and Development Authority (PFRDA). APY scheme is a voluntary scheme to save for retirement.
Atal Pension Yojana
Procedure to apply for Atal Pension Yojana
To take advantage of this scheme, the following steps have to be followed:
All nationalized banks offer APY scheme. An APY account can be opened by visiting these banks.
The account opening form is also available online on the bank's websites. The application form can be downloaded.
The application form is available in English, Telugu, Tamil, Oriya, Marathi, Kannada, Gujarati, and Bangla.
It is necessary to fill the application form and submit it to the bank.
A valid mobile number is required.
Photocopy of Aadhar card has to be submitted.
On approval of the application, a confirmation message is received.
How to fill Atal Pension Yojana Form
Once you get the Atal Pension Yojana form, it is very easy to fill it.
Step 1: Addressing the Form
This form has to be filled addressed to the Branch Manager. You can find out the name of your branch manager by calling the bank or visiting there. Enter your bank name and branch name.
Step 2: Bank details
Fill the form in capital letters. First, you have to provide your bank details. Enter your bank account number, bank name and branch name. It is necessary to fill this field.
Step 3: Personal details
Tick the box next to "Mr.", "Mrs." or "Kum." as applicable. Tick "Mr" if you are a male applicant. Tick "Mrs." if you are a married female applicant. Tick "Kumari" if you are a single female applicant.
Married applicants have to enter the name of their spouse.
Enter your full name, date of birth, and age.
Enter your mobile number, email address and Aadhaar number.
After that you can enter the name of your nominee and your relationship with him. In case of your death, your nominee will get your money.
If the nominee is a minor then you have to enter his/her date of birth and the name of the guardian.
You will also need to state whether the nominee has any other statutory social security scheme and is an income taxpayer.
Step 4: Pension Details
You can invest Rs 1,000 to Rs 5,000 in this account for your pension by making Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000. The box titled "Contribution Amount (Monthly)" has to be left blank as the same is to be filled by the bank after calculating the amount you need to invest every month to get the pension.
This calculation will be done on the basis of your age at the time of entering it. For example, to get a pension of Rs 2,000, you need to invest Rs 151 every month if you are 25 years old at the time of entering it.
Step 5: Declaration and Authorization
You have to enter the date and place name. You can either sign the document or give thumb impression. By signing the document, you declare that you meet the eligibility criteria of Atal Pension Yojana and that you have read and understood the terms and conditions of the scheme. You also declare that the information you have entered is correct to the best of your knowledge. If there is any change in the information entered, you will have to contact the bank immediately. You also declare that you do not have an account with NPS. You will be held accountable for knowingly giving false or incorrect information.
Step 6: This will be filled by the bank
The last part of the Atal Pension Yojana form i.e. "Acknowledgment - Subscriber Registration for Atal Pension Yojana (APY)", has to be filled by the bank. You should leave this box blank. This is an acknowledgment from the bank that they will subscribe to the Atal Pension Yojana scheme for you. After you submit the form, it will be filled by the bank agent.
Eligibility Criteria of Atal Pension Yojana
Following are the eligibility criteria of Atal Pension Yojana:
It is necessary to be a citizen of India to invest in it.
Age should be between 18 to 40 years.
Must have an active mobile number.
Must be a valid bank account number linked to Aadhaar number.
All the details related to 'Know Your Customer' have to be given.
The account holder should not already have an APY account.
Features and Benefits of Atal Pension Yojana
Following are the salient features of the APY scheme:
The Government of India guarantees the minimum pension to be given to the individual after his retirement.
Atal Pension Yojana tax benefit is available on the investment made in this scheme, under section 80CCD.
All bank account holders can join this scheme.
People who invest in this start getting pension after attaining 60 years of age.
Employees working in the private sector who do not get any pension benefit are also allowed to apply for this scheme.
There is an option to get a fixed pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 after turning 60.
After the death of the account holder during this scheme, his/her spouse can either withdraw the money deposited or complete the tenure of the scheme.
Frequently asked questions about Atal Pension Yojana
Is it necessary to submit Aadhaar number while registering for this scheme?
It is not mandatory to provide Aadhaar number while subscribing to it but Aadhaar card is used by banks as the main KYC document to identify the beneficiaries, nominee and spouse of the subscriber.
Can I open an Atal Pension Yojana account even without a savings account?
No, applicants must have a savings bank account while applying for this scheme.
How is the due date of Monthly Contribution or Investment decided?
The due date is decided on the basis of the first investment date.
Is it necessary for the subscribers to have a nominee while joining the Atal Pension Yojana?
Yes, it is necessary to have a nominee. While applying for Atal Pension Yojana, along with giving the details of your spouse, you have to give the details of the nominee. Aadhar details of spouse and nominee also have to be given.
How many Atal Pension Yojana accounts can a subscriber open?
A subscriber is allowed to open only one Atal Pension Yojana account which will be unique to him.
Can I join Atal Pension Yojana without having an Aadhaar number?
Aadhar number is not required while opening Atal Pension Yojana account but Aadhaar related details will be required for enrolling the names of the beneficiaries, spouse and while identifying the nominee.